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8 June, 06:21

The following information is available for Flounder Corp. for the year ended December 31, 2017: Other revenues and gains Other expenses and losses Cost of goods sold Other comprehensive income $10,000 Sales revenue 14,900 Operating expenses 246,400 Sales returns and allowances 5,500 $641,300 231,800 40,000

Prepare a multiple-step income statement for Flounder Corp and comprehensive income statement. The company has a tax rate of 30%. This rate also applies to the other comprehensive income. Flounder Corp. Income Statement For the Year Ended December 31, 2017 Revenues Sales Revenue 641300 Less. Sales Returns and Allowances 40000 Net Sales $ 601300 Cost of Goods Sold 246400 Gross Profit 354900 Operating Expenses 231800 Income From Operations 123100 Other Revenues and Gains $ 10000 Other Expenses and Losses 14900

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  1. 8 June, 08:48
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    Flounder Corp. Income Statement For the Year Ended December 31, 2017

    Revenues:

    Sales Revenue $ 641,300

    Less Sales Returns and Allowances 40,000

    Net Sales $ 601,300

    Cost of Goods Sold 246,400

    Gross Profit 354,900

    Operating Expenses 231,800

    Income From Operations $123,100

    Income Tax on operations 36,930

    Net Income after Income Tax $86,170

    Comprehensive Income Statement:

    Revenues:

    Sales Revenue $ 641,300

    Less Sales Returns and Allowances 40,000

    Net Sales $ 601,300

    Cost of Goods Sold 246,400

    Gross Profit 354,900

    Operating Expenses 231,800

    Income From Operations $123,100

    Other Revenues and Gains $ 10,000

    Less other Expenses and Losses 14,900

    Income from Operations &

    other comprehensive income $118,200

    Income Tax $35,460

    Net Income after Tax $82,740

    Explanation:

    a) A multi-step income statement arranges the revenue and expenses sequentially in order to bring out some financial performance measurement elements, like the gross profit, income from operations, etc.

    b) A Comprehensive income statement is a financial statement that includes both standard income and expenses and other comprehensive income and expenses.
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